AT FIRST BLUSH, the term PLM (product life cycle management) -- with its implied emphasis on long-term paybacks in product development -- seems unlikely to appeal to businesses in this era of slashed IT budgets and immediate ROI demanded of every technology purchase.

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Despite the fact that PLM is billed as a way to manage product data from the concept stage until a product sunsets years later, vendors such as PTC, SAP, Matrix One, and EDS are touting the near-term benefits of these solutions.

The goal of PLM software is to help corporations track and share product data inside and outside of the enterprise. Information contained in these systems often includes hefty CAD files on products ranging from computer parts to aircraft engines.

"PLM involves a tricky balancing act between short-term, unsexy stuff like CAD integration vs. efficiencies from long-term PDM [product data management]," says Kevin O'Marah, an analyst at Boston-based AMR. "But if you hang everything on PDM, someone is going to end up being sad two years into it after saying PLM would transform the business."

Not counting exclusively on such transformation pledges anymore, vendors are pinning enterprise hopes more on the promise of early PLM returns -- travel reductions through electronic methods of product design sharing, for example.

"There are some seemingly boring and unimpressive little victories that can actually make you look good," O'Marah explains.

On top of that, PLM is now being pitched as a pragmatic way for enterprises to include suppliers, partners, and customers in product design and development.

"We see this as a launching pad for communication with our suppliers and vendors," says Mark McLaughlin, director of engineering portfolio management at digital storage giant EMC, a Hopkinton, Mass.-based PLM user.

Most PLM vendors offer modular solutions that serve as building blocks tailored around specific enterprise milestones; they may focus on software sets to help leverage sales or manufacturing input in product development processes.

"Our use of the technology really came out of the fact that we had the capital to do some incremental projects and were not required to buy into the big bang theory," says Dave Karpinski, IT manager at Van Dorn Demag, an injection molding machine company in Strongsville, Ohio.

Using Matrix One's PLM solutions, Van Dorn Demag scoped out 12 "mini-projects" to tackle with PLM. "We did some ROI exercises afterward, but we really didn't have to do too much justification," Karpinski says.

Instead, Karpinski says, the PLM gains spoke for themselves, especially given the fact that the company's engineering drawing packages lacked even lightweight sharing capabilities.

Most recently, Matrix One unveiled its new ProgramManagement Central application, which allows enterprises to tag live product information to internal processes and eliminates the need for manual input when product tasks are finished. Other Matrix One PLM applications include Engineering Central, software to manage engineering changes; and Software Central, which is designed to help enterprises more effectively manage software development.

"Enterprises can start small and grow. Also, different companies have different approaches," says Paul Gilmartin, vice president of product management at Westford, Mass.-based Matrix One.

Looking to appeal to enterprises keen on the PLM add-on approach, PTC in Needham, Mass., now offers its PLM product Windchill as six separate components.

Windchill is behind customer EMC's recent move to enhance product design information, a first step in migrating that data out of the company's engineering pockets. Windchill allowed EMC to step up its "data vaulting" exercise by tacking detailed part information and schematics onto bills of materials EMC's McLaughlin says.

"The changes we have made allow rich content to be attached to the part object. This will serve as our enabler for increased collaboration," McLaughlin explains. He characterizes EMC's PLM efforts as now limited to "some entry-level collaboration."

PTC soon will launch a contract manufacturing solution for OEMs and contract manufacturers, company officials say. The forthcoming solution will help streamline the flow of product data, engineering changes, and procurement materials, so enterprises can work more fluidly with the suppliers used in outsourced manufacturing scenarios.

MySAP also offers a PLM suite, claiming 2,800 global customers. Outsourcing powerhouse EDS also works heavily in the space after buying PLM company SRDC earlier this year. Still, analyst firm AMR characterizes the $1 billion PLM market as fluid and even somewhat "leaderless" last year.

That is, many vendors in 2000 did not want to pin everything on the promise of Web-based collaboration for new product development and introduction. Instead, they hedged bets and wedged PLM into collaborative manufacturing or supply-chain categories.

"These are the early days for PLM," says analyst O'Marah, adding that the push for collaborative commerce may expand PLM demand.

Most enterprise use of PLM remains internal. Extensive use of the technology with external partners is hampered by intellectual property questions and security issues created by sharing sensitive product information, O'Marah explains.

Still, many agree that PLM may appeal immediately to enterprises on a pragmatic level, because collaborative commerce hinges on having the house in order.